Dentsu Announces Agreement to Acquire Leading Digital Agency Magnetix in Denmark

TOKYO – June 17, 2016 – Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that its global business headquarters Dentsu Aegis Network Ltd. has reached an agreement with the principal shareholders of Magnetix A/S (Founder and CEO: Martin Bochineck; Head Office: Copenhagen; hereinafter “Magnetix”), a leading digital agency in Denmark, to acquire the company. The completion of this acquisition is subject to regulatory approval.

The purpose of the acquisition is to strengthen and expand the capabilities provided in the digital and CRM domains by Isobar*, one of the Dentsu Group’s nine global network brands. After the acquisition has been completed, Isobar will become the number one agency in the Nordics.

Founded in 2000, Magnetix has grown to become a leading digital agency in Denmark by creating new standards for customer relations based on industry insights and the intelligent use of technology. Key capabilities include data utilization, the development of CRM programs and the creation of e-commerce platforms, while the services provided to its clients cover the whole range from strategic planning to the implementation and management of solutions.

Magnetix counts among its clients major companies in Denmark as well as multinational blue-chip corporations from a variety of industries. Rated Denmark’s number one digital agency for brand position and brand strength in 2014 and 2015, the digital and direct marketing solutions it provides are highly regarded by its clients.

Post-acquisition, Magnetix will become part of the Isobar network and will be rebranded “Magnetix – Linked by Isobar.” In collaboration with other Group agencies in Denmark, Finland, Norway and Sweden, the newly formed company will work to create synergies and accelerate the Group’s growth strategy for the Nordic region.

In its March 2016 worldwide advertising expenditure forecasts, the Group’s media communications agency Carat announced that digital advertising expenditures in Denmark grew 11.0% in 2015. Continued growth is expected, with 10.5% forecast for 2016 and 9.0% for 2017.

The impact of this transaction on Dentsu’s consolidated financial results for the fiscal year ending December 31, 2015 is expected to be minimal.

*Dentsu Aegis Network Ltd., the Dentsu Group’s global business headquarters based in London, is expanding the Group’s business worldwide through nine global network brands–Carat, Dentsu (Dentsu Branded Agencies), Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum–as well as through several specialist/multi-market brands.

SOURCE: Dentsu